Customs could impound goods if importer has tax dues: Judgment

A judgment issued by the Civil Court on Thursday, last week, has stated that the Maldives Customs Services has the legal authority to impound goods imported by individuals who have outstanding tax items payable to the Maldives Inland Revenue Authority (MIRA).

Civil Court judgment was given in a suit filed by Fuad Zahir, Mariyammaage, G.A. Kolamaafushi after a shipment in his name was impounded by the Customs authorities. The shipment was impounded as Fuad had a record of unpaid taxes to his name.

The Judge at the Civil Court said in his judgment that Customs authorities are empowered to such action by Section 4(b) of the Regulation on Import, Export and Re-export. The authorities refused to process goods declaration in accord with the law, as such.

The Court also said that it is not upon the Customs to indemnify in any way the losses suffered by Fuad in the given situation, as he suffered the consequence of a breach of legal obligation by himself. Hence, the court rejected the claim of the plaintiff for compensation to remedy economic loss arising from the impounding of imported goods.

The judgment also said that goods impounded by the Customs for reasons such as in this case would not be considered as confiscation or deprivation of property by the Government. According to the judge, the Customs, under Section 64(A) of the Customs Act, has authority to temporarily impound goods until such time as the owner fulfills his legal obligations connected directly or indirectly with the goods in question.